Custodian_Banking_Services___Response_to_Questions_Part_2.docx

Responses to Custodian Banking Services

PBGC01-RP-14-0007

April 15, 2014

1. On p. 23 of the RFP, the transactions table indicates a volume of 10,000 for “Asset Transfers”. Please clarify the current process to support these transfers. We would like to provide the correct pricing for these transactions. Is the definition contained on p. 45, section 5.1.3?

Response: This refers to the transfer of assets, via wire, check, or in-kind from the interim custodians of plans taken over by PBGC, sponsors of these plans, or other sources. Further definition of this concept is found as referenced.

2. Please define “suspense file” (p. 45, section 5.1.4).

Response: This file would contain items that have not been resolved or completed on PBGC’s account.

3. How many bank loans does the portfolio currently hold that accompanies the tiered volumes provided on p.25 of the RFP?

Response: The portfolio currently holds 42 bank loans, but this number is subject to change at any time.

4. Please describe the current use of “double entry accounting” (referred to on p. 33 of RFP).

Response: Each transaction that is executed on behalf of PBGC’s fund is created utilizing at least two accounts in the general ledger, where total debits equal total credits. The entries themselves are transparent to PBGC, but the resultant balances are shown on the various reports that are generated.

5. Does the current custodian provide double entry accounting and if so, how?

Response: Yes.

6. Relatedly, is PBGC interested in the custodian providing a service to map transactions to the Trust Fund’s general ledger (G/L) chart of accounts?

Response: That requirement is outlined in Section C.1 Statement of Work, item 3.3.1.16.

7. Is a G/L interface what is meant by “double entry accounting”?

Response: Similar concept in that the G/L interface captures the journal entries that are developed to complete the interface to the PBGC general ledger.

8. Please confirm that PBGC requires average cost only as referenced on p. 35 <of the original RFP> (3.2.1, sub point c).

Response: Yes.

9. In question 1 under Clients, under Securities Lending, the question asks for on loan balance, but the chart to be populated asks for lendable base. Which number would you prefer?

Response: PBGC requests the lendable base be provided.

10. Will you provide your collateral guidelines including acceptable non-cash collateral?

Response: PBGC follows ERISA guidelines for non-cash collateral lending activities.

11. Do you have any securities lending restrictions?

Response: No. PBGC does not have any security lending restrictions.